1. Lesson 2 What Do People Say?

2. What do you think the expression “The Roaring Twenties” means?

3. “The Roaring Twenties” ●The expression refers to the 1920s. ●This period was considered “roaring twenties” because it was a time of prosperity and change in the United States. ●New technological improvement were changing lifestyle in the United States ●People were having their homes updated with electricity.

4. “The Roaring Twenties” cont. ●Radios, refrigerators, electric appliances and telephones were becoming a part of the American way of life. ●Cars were becoming affordable for the middle class, thanks to Henry Ford. ●Many influential people felt that the good times were here to stay.

5. “Big Change!!!!!!!!!” ●Although people thought that the good times world last forever, beginning in 1929 and throughout the 1930, the economy experienced the worst economic downturn in U.S. history-- The GREAT DEPRESSION

6. Your Assignment 1.You are going to work as reporters for a local newspaper, the Smalltown Herald. 2.Your jobs require you to do research on special topics and to produce newsletters on these topics. 3.As you read gather information to construct a newsletter about the Great Depression

7. Things you will need to do as a reporter in order to create your newsletter effectively....

8. Reviewing Resources... Reporters review many sources before writing articles for publication. Please take out the handout - The Great Depression: An Overview It was given to you last Monday, September 15

9. Reading Assignment Passage: The Great Depression: An Overview Sections: “ What Caused the Great Depression? and “Money, Banking, and Deflation.” After Reading:You and your partner will complete the questions on Handout 2.1

10. ●Should reveal the economic problems that existed during the Great Depression ●Use the Reporter’s Research Notes to take notes while reading Letters in Time Your research for your newsletter...

11. While Reading “Letters in Time” 1.These letters are fictitious but are based on actual letters and other primary sources from this era. 2.While reading, pull out important information 3.Look for clues in the letter that identify economic conditions that might have contributed to the economic problems during that time period. 4.Record information on your handout

12. Additional Notes 1.Ford Motor Company closed its Model T plant in 1927 for six months. The plant was closed to plan, design and retool to build the Model A

13. Question How might closing the Ford Model T plant affect the economy?

14. Answer It would primarily affect the workers and businesses that were associated with Ford in Detroit, as well as any suppliers who were located outside of Detroit

15. Question How were mortgage payments a burden on people who lost their jobs?

16. Answer People who lost jobs would not be able to repay their loans People’s mortgages payments would remain the same, but they would not have the income to make the payments. Banks would repossess their houses, but the houses would not have the same value that they had when loans were made.

17. Additional Notes conti 1.A “tariff” is a tax on imported goods. 2.The tax raises the price of imported goods and services relative to the prices of domestic goods and services.

18. Question How did the Smoot-Hawley Tariff affect the prices of imported goods and services?

19. Answer It causes prices to rise Tariffs and other protectionist policies did not help the economy. These policies greatly decreased international trade at a time when it should have been encouraged.

20. Additional Notes cont. 1.When the United States puts tariffs on imports, other countries retaliate and put tariffs on U.S. products. 2.Eventually, countries that are trading partners will add taxed to the extent that fewer goods and services globally are demanded and produced. This is what happened during the Great Depression.

21. Question Keeping a balanced federal budget was important to President Hoover. How did raising taxes affect the economy?

22. Answer Taxes bring more revenue to the federal government.

23. Additional Notes cont 1.Raising taxes transferred money from consumers and businesses to the government so consumers and business couldn’t buy as many goods and services as they could before taxes were raised. 2.This decreased the demand for goods and services and reduced demand for workers who produced goods and services those services.

24. Questions 1.What happened to the stock market? 2.How did the crash affect the economy? 3.Why did farms fail?

25. Answers 1.It crashed in 1929 2.People lost money-wealth was destroyed. People were uncertain about the economy 3.Farmers could not sell their crops or farmers could not repay their loans.

26. Additional Notes 1.World War I made it impossible for many Europeans farmers to grow and sell their crops. 2.As a result, U.S. farmers saw a large increase in the demand for their crops. 3.Many U.S. farmers took out loans to expand their operations to meet this worldwide demand.

27. Additional Notes cont 1.When World War I ended and European communities began to rebuild, European farmers re-entered the farm crop markets. 2.Because this increase the supply of farm crops, the price for these crops decreased. 3.U.S. farmers were unable to sell their crops at the prices they expected. Many were unable to cover the cost of their loans, many farms failed